Roundy’s Inc.’s stock price fell $2.50 to trade at $7.73 per share this morning after the company lowered its earnings forecast.
The Milwaukee-based company reported second quarter net income of $18.9 million, or 42 cents per share, compared with $17.7 million, or 58 cents per share, in the same period a year ago.
The operator of Pick ‘n Save grocery stores reported quarterly net sales of $996.8 million, up $16.4 million, or 1.7 percent, from $980.4 million for the second quarter of 2011.
The company did not open any new stores during the second quarter of 2012 but expects to open three new stores and relocate one store during the second half of 2012.
“Our second quarter results reflect the ongoing effects of a challenging economic environment on our business and our consumers,” said Robert Mariano, Roundy’s chairman, president and chief executive officer. “Our top line results were constrained by an increasingly price-conscious consumer and greater than anticipated pricing and promotional activity in several of our major markets. While these headwinds were worse than we expected in the quarter, we continue to be pleased with the strength in our Chicago area stores and the growing traction of our perishable, organic and own brand product offerings. As we look ahead, we believe that the economic and competitive conditions are likely to remain difficult for the second half of the year and consequently we are reducing our expectations for the year. We will continue to defend our local market leadership and are introducing a number of pricing and promotion initiatives focused on providing customers with high quality products at compelling values.”